$KFI Buyback & Lock
KlayFi Lab has various KFI Buyback Mechanisms for the constant upward pressure of $KFI.
$KFI is minted based on Performance Fees from deposited assets in the Vaults. The purpose of the KFI Buyback Mechanism is developed to eventually increase the ratio of $KFI Buyback compared to newly minting KFI from Performance Fee. In addition, the KlayFi team continuously considers expanding our business and developing services. We strongly believe that our efforts will lead to organic growth of KFI token value.
Currently (as of Oct. 7, 2021), the following are the official Buyback Mechanism of the protocol. At the current status, the ratio from our Buyback Mechanism is approximately 55% of newly minting $KFI. This number is very rare in any DeFi protocols. Moreover, when the price ratio of KFI is above 10:1, actual buyback will increase.
- 40% of Performance Fees from Prime Vaults (most of the Vaults) are used as reserves for $KFI buyback, and the team executes buyback once a week.
- Buyback from Prime Vaults is approximately 25% of newly minting $KFI. (when the price ratio of $KFI:$KLAY is equal to 10:1)
- Depending on the categories of Growth Vaults and APR, 40%~80% from Performance Fees are used for the buyback. The team also executes buyback once a week.
- Buyback from Growth Vaults is approximately 30% of newly minting $KFI. (when the price ratio of $KFI:$KLAY is equal to 10:1)
- When a user uses our swap service, Switch, there is 0.1% of the fee, and every fee from Switch is used for buyback
- Buyback from using Switch is approximately 0.3% of newly minting $KFI.
- The protocol stakes the average 75 % newly minting $KFI since its official launch. (Liquidity providing relating to $KFI also has the upward price pressure of KFI, but we won’t mention it)